New Deals: A commercial painting company, auto wrap company, and 3 other finds

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NEW DEALS

1/ Commercial Painting Company

📍 Location: California
💰 Asking Price: $2,835,000
💼 EBITDA: $629,978
📊 Revenue: $4,782,868
📅 Established: 1987

💭 My 2 Cents: This painting contractor primarily serves commercial real estate clients, including property management firms, HOAs, and restoration contractors working with insurance companies. I really like how, unlike residential painting businesses that rely on one-time projects, they have a strong base of recurring commercial contracts that ensure a predictable revenue flow. While they have a well-defined painting specialty that helps differentiate them from the many competitors in this space, I also like that they can branch out as needed to handle a range of general contracting work (drywall, insulation, carpentry etc), helping reduce the risk of a construction-related economic downturn. However, I’d want to review their financials for the past five years just to confirm the consistency of their earnings over time. I’d also want to check on any possible client concentration issues, if there are any seasonality issues, how much work they have on backlog or in the pipeline, and how their staff is organized to undertake painting versus other contracting work. Ultimately, given their proven track record and location in the thriving LA area, this looks like an awesome opportunity.

2/ Auto Wrap Company

📍 Location: Virginia
💰 Asking Price: $1,999,000
💼 EBITDA: $500,000
📊 Revenue: $1,400,000
📅 Established: 2015

💭 My 2 Cents: I’m always interested in car-related businesses given both the scale of the auto industry and its importance in our society. This company specializes in various vehicle enhancement services, from custom wraps to window tinting. I like how they serve both small businesses and large corporate fleets, providing both diversification and stability to their earnings. I also like that they have built a strong nationwide presence and can coordinate installation of their in-house produced vehicle wraps nationwide. In looking to the future, they have started to move into government contracts while also expanding their capabilities, as they are now partnering on the installation of ballistic film on federal buildings with a leading manufacturer of this mandated material. I’d need more detail on this partnership, including its scope and terms and whether there are other potential markets for ballistic film installation. I’d also be curious about the possibility of expanding into additional protective film services, such as ceramic coatings. I’d finally want to look into any proprietary systems or technology that differentiate them from competitors, the qualifications and experience of their staff, and the role of the owner. Their margins are very solid, so a new owner should be getting both an attractive cash producer and some serious growth upside.

3/ Pool and Outdoor Kitchen Contractor

📍 Location: Florida
💰 Asking Price: $2,800,000
💼 EBITDA: $1,003,844
📊 Revenue: $2,275,000
📅 Established: 1999

💭 My 2 Cents: It’s always worth looking at Florida pool companies, as there is year-round demand for their services. In business for 25 years, this Palm Beach contractor focuses on pool and outdoor kitchen construction, remodeling, and renovation. What catches my eye is their lean business model, as they have a small core team of three and utilize nine long-term subcontractors to do the installation work, giving them both a lot of workflow flexibility and very impressive margins. I also think a new owner could look to expand into recurring pool maintenance services, further capturing value from the customers they already have. I’d need to better understand the revenue split between their different services (especially new construction vs renovation), how they source new customers, how they ensure the quality of their subcontracted work, and the roles and responsibilities of their full-time employees and who will stay after the sale. Ultimately, a buyer will benefit from the booming home improvement market in this high-end area known for its affluent homeowners who invest heavily in luxury outdoor living spaces.

4/ Waterfront Contractor

📍 Location: Arkansas
💰 Asking Price: $2,001,720
💼 EBITDA: $533,994
📊 Revenue: $1,847,960
📅 Established: 1962

💭 My 2 Cents: I love multi-generational family-owned businesses as they tend to have a wonderful reputation and a wealth of knowledge and expertise in their given area. This second-generation contractor, which designs and builds waterfront items like docks, boardwalks, and piers, fits the bill. I like that there’s less competition in marine construction and higher barriers to entry from a knowledge, permit, and equipment basis, and this contractor's stellar reputation and demonstrated skill give them a strong competitive advantage in their niche. These businesses tend to also come with recurring and repeat revenue from regular maintenance and repairs, storm and flood damage repairs, and regular upgrades to meet regulation. Other positives include their team of 19, which includes many longstanding employees, and the more than $600K of FF&E and inventory included in the sale (their facilities are also available for purchase separately). I’d want to know how they bring in new business, how many repeat clients they have, how much competition they face, if there are possible seasonality issues, what licenses are required to operate the business, if their key employees are slated to stay post-transaction, and what will be involved in replacing family members who have been with the company so long.

5/ Auto Transportation and Logistics Company

📍 Location: Georgia
💰 Asking Price: $4,100,000
💼 EBITDA: $1,481,992
📊 Revenue: $6,537,134
📅 Established: 2009

💭 My 2 Cents: This auto transportation and logistics company, operating primarily in the Southeast, is known for their excellence in freight transportation, logistics management, and supply chain solutions. They have an impressive cash flow and a very valuable fleet worth over $4M. If this is truly an accurate valuation of their FF&E, your purchase price would be going almost entirely toward hard assets. Needless to say, this can be great from a debt perspective, as it can provide access to additional forms of financing. Given its importance to both the business and its sale, I’d really need to get a detailed handle on the fleet’s quality, condition, capabilities, current utilization rate, and ability to handle more business. I’d also need to find out how diversified their client base is and if there any concentration risks, their level of recurring business, what the competitive dynamics are like in their market, how sensitive they are to fluctuating maintenance and fuel costs, and if there are any challenges in attracting and retaining qualified drivers. I like the boring nature of this industry, and with an absentee owner and strong management team with a CEO already in place, this deal could be great for someone looking for a remote opportunity.